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Macroeconomics

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What is Frictional, Structural and Cyclical Unemployment?

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Mark who is a sales representative for a local internet solutions firm where he is responsible for selling integrated switches and routers. He has been noticing that it has become more difficult to find new clients.

Last week his supervisor laid him off and mentioned how much he appreciated his work but, due to poor economic conditions, the firm has decided to discontinue the line of products that Mark was selling. Mark becomes very depressed especially since he just got that job after being unemployed for over a year. He decides to move back home with his parents and go back to school full-time with the intention of switching careers.

Which of the following categories correctly characterizes the employment status of Mark?

A

He is considered frictionally unemployed and included in the labor force.

B

He is considered structurally unemployed and not included in the labor force.

C

He is considered structurally unemployed and included in the labor force.

D

He is considered cyclically unemployed and not included in the labor force.

E

He is considered cyclically unemployed and included in the labor force.